#1✓ idemitsu Presentation on Results for the 2nd Quarter FY2023 November 14, 2023 Idemitsu Kosan Co.,Ltd.#2Table of Contents Initiatives aimed at enhancing corporate and equity value -Action to Implement Management that is Conscious of Cost of Capital and Stock Price- ■Highlights Results for the 2Q FY2023 Forecasts for FY2023 Progress on the mid-term management plan Reference ✓ Financial results ✓ Volume ✓ Crude/product price and operation ✓ Business overview idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 2#3idemitsu ■Initiatives aimed at enhancing corporate and equity value -Action to Implement Management that is Conscious of Cost of Capital And Stock Price- Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 3#4To Improve Corporate Value and Equity Value FY25 ROE target revised upward to "≥ 10%" Reduce cost of capital to rapidly achieve PBR ≥ 1.0 Further accelerate medium-term plan initiatives Business strategy Promote structural reforms ➤ Further enhance earnings from existing businesses and capital efficiency ➤ Transform business and reduce GHG through expansion of new businesses Capital/financial strategy Promote capital/ financial strategy to enhance return on capital • Enhance shareholder returns Expand the shareholder/investor base and improve communication idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved.#5Upward Revision of the FY25 ROE Target FY25 ROE target: At the medium-term plan announcement (11/2022) Current revision 8.0% ≥10% ■Reason for the upward revision ✓ Considering both necessity for further improvement of return on capital from existing businesses and the cost of capital expected by the market; ROE ≥ 10% must be achieved ■Direction of efforts aimed at achieving "ROE ≥ 10%": 1. Further enhance earnings and capital efficiency from existing businesses 2. • Petroleum: Increase capacity utilization at refineries, increase earnings from overseas, reduce capital investments, etc. • Functional materials: Leverage M&A, etc. to expand growing businesses Businesses facing challenges: Achieve stable profits of NSRP and power/renewable energy segment • Implement capital/financial strategy to enhance profitability Pursue optimal financing balance, taking business risk, credit ratings, return on capital, etc. Improve shareholder returns (next slide) idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 5#6Review of the Shareholder Returns Policy Current ✓ Total payout ratio of at least 50% of cumulative net income excluding inventory impact in FY23-25 ✓ Provide stable dividends of ¥120/share Stronger focus on return on capital and shareholder return Revised ✓ Total payout ratio of at least 50% of cumulative net income excluding inventory impact in FY23-25 • • Dividends: Increase to ¥160/share and set this as the minimum Acquisition of treasury shares: Execute in a flexible manner while monitoring the stock price ■ Shareholder returns in FY2023 • Dividends: ¥160/share • idemitsu (total payout ratio of around 50% in FY23 single) Acquisition of treasury shares: ¥35 billion Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. (о#7Reduce Cost of Capital through Business Transformation Enhance earnings to achieve ROE ≥ 10% Transition to decarbonized businesses Achieve GHG reduction targets Convert "quality" of profits Non-fossil fuel business (incl. new businesses) Business Transformation Transition to growing businesses Expand new businesses Leverage M&A Fossil fuel business ≤ 50% of earnings Change in the earning structure FY23 Forecast *1 FY25 Medium-term plan FY30 Medium-term plan Reduce earnings volatility from market fluctuations Achieve carbon neutrality, profit growth, and a stable earning structure through business transformation while also pursuing lower cost of capital idemitsu *1: FY23 forecast is adjusted by applying market assumptions for coal prices, etc. set forth in the medium-term plan Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 7#8Major Progress towards Business Transformation | Adapt to needs for CN of fossil fuel Hydrogen/ Ammonia Biofuel (SAF, etc.) Synthetic Fuel Collaboration on supply chain establishment (Tosoh, Tokuyama, Zeon, JERA, KEPCO) Collaboration on security and procurement of feedstock (J-OIL MILLS, LOPS) Production/Procurement -study on practical application and diffusion in Japan (Saudi Aramco, HIF Global, HEPCO, JAPEX) Enter electrification/EV value chain Solid electrolytes Collaboration on development of high- performance materials and scale-up production of all-solid-state lithium-ion batteries Investment in mine exploration companies and projects 88 ■Our key strengths - location of production and transportation - production technologies - overseas trading network - SS network - domestic sales network (Delta Lithium [lithium], Vecco [vanadium]) ■Our key strengths - Mine development know-how - Research technologies - SS network A Achieve social implementation and commercialization by taking advantage of Idemitsu's existing assets and through domestic and foreign partnerships Rare metal development Fidemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 00#9Towards the Achievement of GHG Reduction Targets (New Scope 3 Indicator) ✓ Aiming to reduce emission throughout the supply chain through business transformation ✓ A new indicator "carbon intensity" will be used to set targets and promote further initiatives [Formula] Carbon Intensity CO2 emissions (Scope1+2+3)*1 Volume of energy supplied [Target - vs. 2020] 2030: -10% 2040: -50% Base Carbon Intensity 0 2020 (Base Year) 10% ▲ 50% (Rising temperature)*1 [Social Implementation Themes and Expected Business Size] Theme Units 2030 2040 0000 (≤2.6°C) Hydrogen/ammonia 100 400 tons 0000 SAF/biofuel/synthetic fuel 50 250 KL Mixing non-fossil fuels (≤2.0°C) into gasoline*2 % 10°2 20 Idemitsu Green Energy Pellet 0000 300 300- tons (≤1.5°C) 0000 Planting, CCS, etc. 100 700 2025 2030 2035 2040 2045 2050 tons idemitsu *1: The area graph above shows degree of low carbon society based on IEA's scenario(company estimate) *2: Anticipating mixture limited to premium unleaded gasoline in 2030 *To be revised as needed based on progress in investment screening for business structure reforms, etc. Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 9#10Expand the Shareholder/Investor Base and Improve Communication ■ Stock split The stock split will be implemented to increase shareholders who identify with our group's medium-to-long-term strategy by reducing the share price and making it easier to invest in our stock Split ratio: 1:5 Minimum investment: ~¥70,000 *1 Record date: 12/31/2023 Effective date: 1/1/2024 Increase from ¥24 to ¥32/share for annual dividend after the stock split and set this as the minimum (increase from ¥120 to ¥160/post-split share and set this as the minimum) ■Increase opportunities for dialogue with the capital markets and information disclosures ✓ We were ranked the 1st of the energy sector in good disclosure company selected by the Securities Analyst Association of Japan ✓ We will continue to increase the quality and quantity of disclosures Created shareholder website "Idemitsu Connect" FY 2023 Good Disclosure Company SAAJ Discl closure The Securities Analyst Association of Japan Idemitsu Connect ✓ Created as a platform for individual shareholders to learn about and connect more with Idemitsu Planning the following events idemitsu Shareholders' website ✓ :online live events featuring the president, site tours, shareholder perks lottery system, etc. idemitsu *1: Calculated based on a pre-split price of ¥3,500 per share. Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 10#11Highlights idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 11#12Results for the 2Q FY2023 ■ Summary ✓ Operating + equity income (segment income) decreased by ¥163.1 billion y- o-y, due to reversal of inventory impact resulting from increased crude oil prices in the previous fiscal year, etc. ✓ Segment income excluding inventory impact increased by ¥28.4 billion, as the positive impact of time-lag in the petroleum business, etc. offset the negative impact of mine size reductions in the coal business and the decrease in coal prices in reaction to the sharp rise observed in the idemitsu previous year [\billions] 2Q FY2022 2Q FY2023 Change Operating Income 374.3 211.2 (163.1) + Equity Income Inventory impact 208.2 16.7 (191.5) Exc. inventory impact 166.2 194.6 +28.4 Net Income Attributable to 280.8 164.9 (115.9) Owners of the Parent Exc. inventory impact 136.4 153.4 +17.0 Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 12#13Revision of Forecasts for FY2023 ■ Overview ✓ Revised forecasts upward to reflect changes in the external environment such as increased crude oil prices and further JPY depreciation [\ billions] 5/9 Forecast Revised Change Forecasts Operating Income + Equity Income 155 265 +110 |Inventory impact (30) 45 +75 Exc. inventory impact 185 220 +35 Net Income Attributable 100 180 +80 to Owners of the Parent Exc. inventory impact 120 150 +30 ■Shareholder returns (dividends and acquisition of treasury shares) ✓ Increased the FY23 dividend forecast from ¥120/share to ¥160/year (interim: ¥80, FY end: ¥80*1) in light of the change in shareholder return policy ✓ Acquiring treasury shares of ¥35 billion based on the revised FY23 earnings forecast ✓ As a result, we expect the total payout ratio to exceed 50% in FY23 idemitsu *1: Expected FY-end dividends of ¥16/share to reflect the stock split Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 13#14■Results for the 2Q FY2023 idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 14#15Key Topics Trends in Petroleum Demand and Sales ✓ Demand for core products, particularly gasoline, has stabilized after recovery from reduction under COVID-19 ✓ Jet fuel demand has remained on a recovery trend since FY2020 FY2020 FY2021 FY2022 2Q FY2023 Core products 94.6% 98.6% 100.9% 98.0% Gasoline 90.4% 99.6% 101.3% 98.5% Jet fuel 54.2% 126.0% 136.8% 108.3% *Idemitsu sales growth rate (y-o-y) ■ Situation of Nghi Son Refinery in Vietnam ✓ Almost break-even at the operating profit level in 1H; forecasting positive profits for the full fiscal year ✓ Regular maintenance was completed as planned; anticipating earnings improvement in the next fiscal year due to enhanced productivity, etc. ✓ Continuing constructive discussions between sponsors to pursue further earnings improvement idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 15#16[USD/bbl] 120.0 Operating Environment Dubai Crude Australian Coal Oil Price [USD/ton] 450.0 Spot Price FY2023 FY2022 420.0 420.7 [JPY/USD] Exchange Rate (USD) 150.0 390.0 110.0 145.0 144.6 376.8 379.5 108.1 360.0 330.0 137.4 138.4 100.0 140.0 300.0 96.9 270.0 263.7 90.0 86.7 84.8 210.0 135.0 247.8 240.0 80.0 177.8 180.0 80.3 160.7 150.0 70.0 4 5 6 7 8 9 10 11 12 1 2 3 idemitsu 141.6 132.3 130.0 129.6 147.8 120.0 125.0 1 2 3 4 5 6 7 8 9 10 11 12 4 5 6 7 8 9 10 11 12 1 2 3 Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 16#17Overview 2Q FY2022 2Q FY2023 ■Crude Oil/Coal/Exchange Rate Crude Oil (Dubai) Crude Oil (Brent)* Australian Coal Spot Price* Exchange Rate (TTM) 102.5 107.6 320.3 134.0 [USD/bbl, USD/ton, JPY/USD] Change 82.3 (20.2) (19.7%) 79.8 (27.8) (25.8%) 204.3 (116.0) (36.2%) 141.0 +7.0 +5.2% *Brent prices and Australian coal spot prices are averages based on the calendar year (Jan-Jun). ■Consolidated Income Statement(Summary) [\billions] 2Q FY2022 2Q FY2023 Change Net Sales 4,814.1 4,024.5 (789.6) (16.4%) Operating Income 354.1 202.9 (151.2) (42.7%) Inventory impact 208.2 16.7 (191.5) (92.0%) Equity Income 20.3 8.3 (11.9) (58.9%) Operating Income 374.3 211.2 + Equity Income (163.1) (43.6%) Excluding inventory impact 166.2 194.6 +28.4 +17.1% Ordinary Income 381.2 226.5 (154.8) (40.6%) Extraordinary Income/Losses 17.4 1.3 (16.0) (92.2%) Net Income Attributable to 280.8 164.9 Owners of the Parent (115.9) (41.3%) Excluding inventory impact 136.4 153.4 +17.0 +12.5% *Gross average method of inventory valuation Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. idemitsu *Inventory impact" represents the impact of inventory valuation and the reduction in book value of inventory assets 17#18Segment Information ■ Operating + Equity Income [\ billions] 2Q FY2022 2Q FY2023 Change Petroleum 269.3 121.7 (147.6) (54.8%) Excluding inventory impact 61.1 105.0 +43.9 +71.9% Basic Chemicals 14.2 12.0 (2.2) (15.3%) Functional Materials 8.6 13.4 +4.8 +55.9% Power and Renewable Energy (2.9) (0.4) +2.4 Resources* 100.1 69.8 (30.3) (30.3%) Oil Exploration and Production 17.1 10.5 (6.6) (38.6%) Coal 83.0 59.3 (23.7) (28.5%) Others/Reconciliation (14.9) (5.2) +9.7 Total 374.3 211.2 (163.1) (43.6%) Excluding inventory impact 166.2 194.6 +28.4 +17.1% *Fiscal year for Coal Oil E&P and Coal included in the Resources Segment end in Dec. idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 18#19Segment Information Factors Affecting Operating + Equity Income (excluding inventory impact, y-o-y) [\billions] fuel cost, etc. Export non-core 17.0 products Solar, etc. margin Cost, etc. Lubricants, etc. Vietnam, etc. Norway core products margin 15.1 2.4 Volume 4.8 (time-lag) (1.4) Volume (23.1) (1.4) (0.8) (5.2) 34.9 166.2 2Q FY2022 Fidemitsu Petroleum +43.9 Basic Functional Chemicals Materials (2.2) +4.8 Power/ Renewable Energy +2.4 +28.4 Oil E&P (6.6) Consolidated adjustment, etc. Exchange rate, etc. 9.7 194.6 Price 6.5 (20.9) (9.3) Coal (23.7) Others +9.7 2Q FY2023 Resources (30.3) Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 19#20Segment Information [Petroleum] YoY+¥43.9 (2Q FY22: ¥61.1bn 2Q FY23: ¥105.0bn) [Y-o-y change in Petroleum sales volume (core products)] [Trends in Domestic Petroleum Product Margin*] *Average margin of gasoline, diesel oil, kerosene, and heavy oil A (domestic spot-crude oil) [Thousand KL] (YoY) 98.9% 97.2% 8,000 6,982 6,701 6,000 4,000 6,776 2,000 Last FY Current FY [\/L] 20.0 18.0 16.0 8,114 8,014 14.0 7,180 12.0 10.0 FY2022 *Solid line includes impact of time lag *Dotted line excludes impact of time lag FY2023 0 8.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q ✓ Profit increased as a result of improved domestic core product margins due to positive time-lag, improved non-core product margins and a decrease in fuel costs, etc. ✓ The above was partially offset by a decrease in export volume due to regular maintenance Fidemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 20 20#21Segment Information [Basic Chemicals] YoY-¥2.2bn (2Q FY22: ¥14.2bn 2Q FY23: ¥12.0bn) ✓ Decreased as a result of sales volume reduction and cost increase due to shut down maintenance Product margin was unchanged in total [USD/ton] Product 2Q FY22 2Q FY23 Change Price Margin Price Margin Price Margin PX 1,174 379 1,051 427 (122) +48 MX 1,103 308 957 333 (145) +25 SM 1,295 500 1,030 406 (265) (95) [Functional Materials] YoY+¥4.8bn (2Q FY22: \8.6bn 2Q FY23: ¥13.4bn) ✓ Lubricants: Increased due to reversal of negative time-lag impact from the previous FY ✓ Performance chemicals: Decreased due to reversal of soaring market prices in some products in the previous FY ✓ Electronic materials: Decreased due to reduced sales volume resulting from current weak demand for Smartphones and OLED-TVS [Power/Renewable Energy] YoY+\2.4bn (2Q FY22: -¥2.9bn ➡2Q FY23: -¥0.4bn) ✓ Power: Improved mainly due to initiatives towards sales within self generation ✓ Solar: Improved due to cost reductions based on structural reforms and sales expansion of solar panels for self-consumption model idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 21#22Segment Information [Oil E&P] YoY -\6.6 bn (2Q FY22: ¥17.1bn 2Q FY23 : \10.5 bn) <Crude Oil Production Volume and Brent Crude Oil Price Trends> [Coal] YoY -\23.7 bn (2Q FY22 ¥83.0bn 2Q FY23: ¥59.3 bn) <Coal Production Volume and Australian Coal Spot Price Trends> FY2022 FY2023 FY2022 FY2023 [Thousand BOE] [USD/bbl] [Thousand tons] [USD/ton] 3,500 113.8 120 2,500 500 3,300 101.4 100.9 88.7 100 3,100 2,000 420.7 376.8 379.5 450 400 81.3 78.4 2,900 350 80 2,700 1,500 263.7 300 247.8 2,500 60 250 2,244 2,343 2,300 3,076 1,000 2,097 1,968 200 2,866 2,852 40 2,100 2,632 2,722 2,718 1,699 1,716 150 160.7 1,900 500 100 20 1,700 50 1,500 0 0 0 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q * Production volume remained flat y-o-y ✓ Profit decreased due to a fall in crude oil prices and to cost-related factors Figures reflect share of rights owned in resource development affiliates * Revised errors in Vietnam FY22 and FY23 1Q figures ✓ Profit fell due to a decrease in production volume following a size reduction of mines as well as the reversal of the strong market conditions seen in the previous FY * Terminated mining at Muswellbrook mines in March 2023 idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 22 22#23Balance Sheet [\ billions] 3/31/2023 9/30/2023 Change 3/31/2023 9/30/2023 Change Total Current Cash and Deposits 105.2 173.1 +67.9 2,164.0 2,317.4 +153.4 Liabilities Receivables, 2,626.9 2,826.3 +199.4 Inventory, etc. Total Fixed Liabilities 1,072.1 1,055.9 (16.2) Total Current 2,732.1 2,999.4 +267.3 Total Liabilities 3,236.1 3,373.3 +137.2 Assets Tangible Fixed Shareholders' Equity and 1,390.0 1,390.2 +0.2 Other Comprehensive 1,614.5 1,767.3 +152.8 Assets Income Noncontrolling Other Fixed Assets 743.3 764.8 +21.5 14.8 13.7 Interests (1.0) Total Fixed Assets 2,133.3 2,155.0 +21.7 Total Net Assets 1,629.3 1,781.1 +151.7 Total Assets 4,865.4 5,154.3 +288.9 Total Liabilities and Net Assets 4,865.4 5,154.3 +288.9 Net D/E ratio 0.87 0.75 (0.12) Total Interest- 1,503.4 1,495.2 bearing debt (8.2) Equity ratio 33.2% 34.3% +1.1% idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 23 23#24Statement of Cash Flows Cash Flow from Operating Activities Net Income before tax Depreciation Expense Change in Working Capital Other [\ billions] 206.9 227.8 53.7 (115.5) 40.9 Cash Flow from Investing Activities (58.2) Purchase of tangible fixed assets Other (40.0) (18.2) Cash Flow from Financing Activities (84.3) Change in borrowings (30.4) Dividend payments and share buyback Other (49.8) (4.2) Translation gains/losses 3.2 Change in cash and deposits 67.6 Cash and Cash Equivalents - Beginning Balance 103.1 Cash and Cash Equivalents - Ending Balance 170.7 idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 24 24#25■Forecasts for FY2023 idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 25 25#26Forecasts for FY2023 ■Crude Oil/Coal/Exchange Rate Crude Oil (Dubai) Crude Oil (Brent)* Australian Coal Spot Price * Exchange Rate (TTM) 5/9 Forecasts Revised [USD/bbl, USD/ton, JPY/USD] Assumptions Change Forecasts (from Oct.) 80.0 83.6 +3.6 +4.5% 85.0 85.0 83.2 (1.8) (2.1%) 86.5 170.0 175.3 +5.3 +3.1% 145.0 130.0 140.5 +10.5 +8.1% 140.0 *Brent prices and Australian coal spot prices are averages based on the calendar year (Jan-Dec). ■ Consolidated Income Statement(Summary) [\billions] 5/9 Forecasts Revised Forecasts Change Net Sales Operating Income Inventory impact 8,300.0 8.650.0 +350.0 +4.2% 140.0 250.0 +110.0 +78.6% (30.0) 45.0 +75.0 Equity Income 15.0 15.0 Operating Income 155.0 265.0 +110.0 +71.0% + Equity Income Excluding inventory impact 185.0 220.0 +35.0 +18.9% Ordinary Income 150.0 270.0 +120.0 +80.0% Extraordinary Income/Losses (8.0) (17.0) (9.0) Net Income Attributable to 100.0 180.0 +80.0 +80.0% Owners of the Parent Excluding inventory impact 120.0 150.0 +30.0 +25.0% idemitsu *Gross average method of inventory valuation Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. *"Inventory impact" represents the impact of inventory valuation and the reduction in book value of inventory assets 26 26#27Segment Information ■ Operating + Equity Income [\billions] 5/9 Revised Change Forecasts Forecasts Petroleum 43.0 135.0 +92.0 +214.0% Excluding inventory impact 73.0 90.0 +17.0 +23.3% Basic Chemicals 21.0 21.0 - Functional Materials 19.0 23.0 +4.0 +21.0% Power and Renewable Energy 0.0 (5.0) (5.0) Resources* 95.0 109.0 +14.0 +14.7% Oil Exploration and Production 13.0 16.0 +3.0 +23.1% Coal 82.0 93.0 +11.0 +13.4% Others/Reconciliation (23.0) (18.0) 5.0 Total 155.0 265.0 +110.0 +71.0% Excluding inventory impact 185.0 220.0 +35.0 +18.9% *Fiscal year for Oil E&P and Coal included in the Resources Segment end in Dec. idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 27 12#28Segment Information ■Factors Affecting Operating + Equity Income (excluding inventory impact, Compared to the 5/9 forecasts) Exchange [\ billions] Consolidated adjustment, etc rate, etc. 5.0 220.0 Performance Price Chemicals, etc. 5.0 Vietnam Volume 3.0 Export Margin Power 3.0 4.0 core products margin (time-lag) Volume 3.0 27.0 6.0 non-core products (5.0) margin 9.0 (6.0) 185.0 5/9 Forecasts idemitsu fuel cost, etc. (15.0) (4.0) Oil E&P +3.0 Coal +11.0 Petroleum +17.0 Basic Functional Power/ Chemicals Materials Renewable ±0.0 +4.0 Energy (5.0) +35.0 Resources +14.0 Others +5.0 Revised Forecasts Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 28#29Segment Information [Petroleum] +¥17 bn (5/9 announcement: ¥73 bn ➡revised forecast: ¥90 bn) ✓ Revised upward to reflect improved export margins, positive time-lag effects resulting from a rise in crude oil prices, etc. ✓ A fall in non-core product margins and increased fuel costs partially offset by improvements in the overseas trading business [Basic Chemicals] ±\0 (5/9 announcement: ¥21 bn ➡revised forecast: \21 bn) ✓ Decline in sales volume due to sluggish demand for olefin and other derivatives offset by a recovery in the aroma market price [USD/ton] Product 5/9 Announcement Current Forecast Change Price Margin Price Margin Price Margin PX 960 290 980 330 +20 +40 MX 870 200 890 240 +20 +40 SM 1,090 420 1,060 410 (30) (10) [Functional Materials] +¥4 bn (5/9 announcement: ¥19 bn ➡revised forecast: \23 bn) ✓ Functional chemicals: Revised upward to reflect price increases, etc. ✓ Asphalt: Revised downward due to increased raw material cost such as heavy oil fractions ✓ Lubricants: No change, with a volume decrease offset by cost reductions, etc. idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 29 29#30Segment Information [Power/Renewable Energy] -¥5 bn (5/9 announcement: \0 ➡revised forecast: -¥5 bn) ✓ Power business: Factored by the decrease in generated power volume due to an extension of the regular power plant maintenance period and reflected risk of a profit decrease in wholesale resulting from a fall in market prices ✓ Solar business: No change ✓ Sold Kunitomi Plant, which used to manufacture solar panels, anticipating cost reduction effects in the next fiscal year [Oil E&P] +¥3 bn (5/9 announcement: ¥13 bn ➡revised forecast: \16 bn) ✓ Revised upward due to increased production volume in Vietnam as well as JPY depreciation, etc. [Coal] +11 bn (5/9 announcement: ¥82 bn revised forecast: \93 bn) ✓ Revised upward due to JPY depreciation as well as production volume increase at Ensham coal mine, etc. idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 30 30#31■Progress on the Medium-Term Plan *The icons on topics (from next page) related to progress in the medium-term plan shows business areas below H2 NH3 Diverse resource Energy one step ahead idemitsu conservation /circulation solutions 2 Smart Yorozuya Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 31#32Topics Affecting Progress on the Medium-term Plan (1/4) Progress on the Medium-term Plan Commenced cooperation toward mass production of all-solid-state batteries for BEVS with Toyota ✓ Working together in developing mass production technology of solid electrolytes, improving productivity and establishing a supply chain ✓ Seeking the successful commercialization of all-solid-state batteries in 2027-28, followed by full-scale mass production TOYOTA Fidemitsu H2 NH3 Picture of joint press conference (Link to our disclosure document) https://www.idemitsu.com/en/content/100043691.pdf idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 32 32#33Topics Affecting Progress on the Medium-term Plan (2/4) Progress on the Medium-term Plan Commenced joint study with LOPS on SAF feedstock procurement ✓ Aiming to establish a system to stably procure SAF feedstocks such as waste cooking oil from various parts of Japan by the late 2020s [Image of Future Collaboration] H2 NH3 Scope of joint study by both companies Stable procurement of SAF feedstock through the optimization and cost reduction of storage and transportation (Link to our disclosure document) https://www.idemitsu.com/en/news/2023/230824.html SAF production Contribution to the decarbonization of aviation fuels H2 NH3 ■Commenced joint study with PETRONAS on SAF supply chains ✓ A feasibility study to scale-up bio feedstock possibilities including cost analyses ✓ Also focusing on supply potential of non-edible oil feedstock trees such as Pongamia and Jatropha (Link to our disclosure document) https://www.idemitsu.com/en/content/100043647.pdf demit idemitsu idemitsu MOU signing ceremony Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 33#34Topics Affecting Progress on the Medium-term Plan (3/4) Progress on the Medium-term Plan ■Launched demonstration test on recycling marine plastic waste with Mitsui O.S.K. Lines ✓ To utilize marine plastic wastes using an automated marine debris collection device ✓ Aiming to produce generated oil by the technology of recycling of used plastics into oil MOL Group Marine plastic collection Chemical Recycling Japan Conversion of marine. plastics into oil Marine plastic Marine plastic collection device Converting equipment (Link to our disclosure document) https://www.idemitsu.com/en/news/2023/230926.html Generated oil Refining equipment Idemitsu Group Generated oil evaluation: Petrochemical equipment Chemicals Newly-produced plastic products Used plastic products ■Launched demonstration test on recycling of used plastic construction waste with Takenaka Corporation ✓ Aiming to produce oil generated from used plastics arising at construction sites Takenaka Sorting of construction plastics Chemical Recycle Japan Liquefaction of construction plastics Generated oil Idemitsu Group Evaluate generated oil Sorting at the construction site (Link to our disclosure document, Japanese only) https://www.idemitsu.com/jp/news/2023/231031 2.html idemitsu Liquefaction apparatus Oil refinery apparatus Petrochemical apparatus Chemical products Circular plastic construction materials Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 34#35Topics Affecting Progress on the Medium-term Plan (4/4) ■ Withdrawal from the Bisphenol A business Progress on the Medium-term Plan ✓ The business environment has deteriorated owing to an oversupply caused by the expansion of facilities in Asia ✓ Planning to stop operating the manufacturing equipment at Chiba Complex by October 2024 (Link to our disclosure document) https://www.idemitsu.com/en/news/2023/231025.html ■Sales of former Kunitomi plant of Solar Frontier ✓ Terminated panel production in June 2022 ✓ Completed sales of the plant in November 2023 for an effective use of idle assets in accordance with business structure reforms ✓ Enhancing growth strategy as a next-generation systems integrator idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 35 55#36Investments Progress on the Medium-term Plan FY23 1H Results Strategic Maintenance Total FY23 Forecast [\billions] *unchanged from 5/9 announcement Strategic Maintenance Total Existing Businesses 5.5 40.6 46.1 53.0 102.0 155.0 Business Structure 8.6 0 8.6 87.0 0.0 87.0 Reforms Total 14.1 40.6 54.7 140.0 102.0 242.0 * Amounts based on expenditures [Strategic Investments] ✓ Investment in Delta Lithium, an Australia-based lithium exploration company as a main item for 1H Results ✓ Planning to invest business structure reforms amounting 3-year total of ¥290 billion set forth in the medium-term plan Selecting investment items through screening that secures investment return from a wide variety of options like SAF, hydrogen/ammonia, Recycling used plastics in addition to what we have tackled since the previous medium-term plan such as Lithium Solid Electrolytes and Idemitsu Green Energy Pellets. idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 36#37■Reference idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 37#38Financial Results Financial Results ■Net Sales by segment [\ billions] 2Q FY2022 2Q FY2023 Change Petroleum Basic Chemicals 3,814.1 3,189.1 (625.0) (16.4%) 363.0 280.2 (82.8) (22.8%) Functional Materials 245.6 248.4 +2.8 +1.1% Power and Renewable Energy 89.8 72.1 (17.7) (19.7%) Resources* 300.3 233.3 (67.0) (22.3%) Oil Exploration and Production 22.2 21.8 (0.5) (2.1%) Coal 278.1 211.5 (66.5) (23.9%) Others/Reconciliation Total 1.3 1.4 +0.1 +8.3% 4,814.1 4,024.5 (789.6) (16.4%) *Fiscal year for Oil E&P and Coal included in the Resources Segment end in Dec. idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 38 88#39Financial Results ■ Quarterly segment income (cumulative, exc. inventory impact) Financial Results [\ billions] FY2022 FY2023 1Q 2Q 3Q 4Q 1Q 2Q Petroleum 57.4 61.1 1.2 17.3 18.4 105.0 Equity income 7.0 12.4 12.8 12.9 4.9 3.8 Basic Chemicals 8.1 14.2 11.4 10.1 (1.4) 12.0 Equity income (0.1) (0.1) 0.5 (0.1) (0.6) (1.0) Functional Materials 3.3 8.6 16.4 17.0 5.5 13.4 Equity income 0.0 0.3 (0.3) (0.7) (0.2) (0.1) Power and Renewable Energy (3.7) (2.9) 1.1 0.5 (0.5) (0.4) Equity income (0.4) (0.7) (0.4) (1.6) 0.3 0.3 Resources -Oil Exploration and 6.5 17.1 26.4 32.8 5.7 10.5 Production Equity income 2.9 6.7 10.6 13.7 3.5 5.3 -Coal 25.1 83.0 151.3 198.1 34.7 59.3 Equity income (0.0) (0.0) Others/Reconciliation (11.9) (14.9) (22.5) (23.0) (5.1) (5.2) Equity income 1.1 1.7 1.7 1.8 0.0 0.0 Total 84.9 166.2 185.4 252.7 57.4 194.6 Equity income 10.5 20.3 25.0 26.0 7.8 8.3 Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. idemitsu 39 99#40Financial Results ■ Quarterly segment income (Q on Q, exc. inventory impact) Financial Results [\ billions] FY2022 FY2023 1Q 2Q 3Q 4Q 1Q 2Q Petroleum 57.4 3.7 (59.9) 16.1 18.4 86.6 Equity income 7.0 5.4 0.4 0.1 4.9 (1.0) Basic Chemicals 8.1 6.1 (2.8) (1.3) (1.4) 13.4 Equity income (0.1) (0.0) 0.6 (0.6) (0.6) (0.4) Functional Materials 3.3 5.3 7.8 0.6 5.5 7.8 Equity income 0.0 0.3 (0.6) (0.4) (0.2) 0.1 Power and Renewable Energy (3.7) 0.8 4.0 (0.7) (0.5) 0.1 Equity income (0.4) (0.3) 0.3 (1.2) 0.3 0.0 Resources -Oil Exploration and 6.5 10.5 9.3 6.4 5.7 4.8 Production Equity income 2.9 3.8 3.9 3.1 3.5 1.8 -Coal 25.1 57.8 68.4 46.8 34.7 24.6 Equity income (0.0) (0.0) Others/Reconciliation (11.9) (3.0) (7.7) (0.5) (5.1) (0.1) Equity income 1.1 0.6 0.1 0.0 0.0 0.0 Total 84.9 81.3 19.2 67.3 57.4 Equity income 10.5 9.8 4.7 1.0 7.8 137.1 0.5 Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. idemitsu 40 40#41Financial Results Sensitivity Major items affecting operating profit by changes in assumptions (3-4Q) Assumption Items Revised assumption Range of fluctuation Segment (from Oct.) Income impact (\ billions) Major Factors Fuel cost, Crude oil price 85.0$/bbl ±10$/bbl Singapore product margin Excluding inventory impact Exchange rate 140.0\/$ +5\/$ +15.0 time-lag +5$/bbl ±22.0 Export Petroleum ±5.0 Fuel cost, time-lag Thermal coal 145.0$/t ±10$/t price Resources (Coal) ±1.0 Thermal coal Crude oil price 85.0$/bbl ±10$/bbl +37.0 Inventory impact Petroleum Exchange rate 140.0\/$ +5\/$ ±11.0 * In the petroleum segment, only performance impacts on products made in domestic refineries are shown. In addition to the above, income will also be affected by sales of overseas affiliates * 3-month impact during shown for the resources segment (coal), as its fiscal year ends in Dec. idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 41#42Sales Volume ■ Petroleum Volume [thousand KL, %] 2Q FY2022 2Q FY2023 Change Gasoline Naphtha Jet Fuel Kerosene Diesel Oil 6,640 6,537 (103) (1.5%) 190 192 +2 +0.8% 1,149 1,244 +95 +8.3% 826 750 (75) (9.1%) 5,096 5,028 (69) (1.3%) Heavy Fuel Oil A 1,394 1,368 (26) (1.9%) Heavy Fuel Oil C 1,267 1,159 (108) (8.5%) Total Domestic Sales Volume 16,562 16,278 (284) (1.7%) Exported Volume 4,167 3,067 (1,100) (26.4%) Total Sales Volume 20,729 19,345 (1,384) (6.7%) *Export includes bond sales of jet fuel and heavy fuel oil C Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. idemitsu 42 42#43Sales Volume ■Basic Chemicals Volume [kt,%] Basic Chemicals 2Q FY2022 2Q FY2023 1,709 Change 1,617 (91) (5.3%) ■Functional Materials Lubricants Performance Chemicals *Lubricants include sales overseas ■ Power/Renewable Energy [KKL,kt,%] 2Q FY2022 2Q FY2023 Change 577 565 (12) (2.0%) 346 299 (47) (13.6%) [Mkwh,%] 2Q FY2022 2Q FY2023 Change Retail Power Sales 1,882 1,020 (863) (45.8%) idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 43 33#44Volume Production Volume ■Resources (Oil E&P) [KBOED,%] 2Q FY2022 2Q FY2023 Change Vietnam 15.8 16.8 +1.0 +6.2% Norway 15.7 14.8 (0.9) (5.8%) Total('000BOED) 31.5 31.6 +0.1 +0.2% Total('000BOE) 5,708 5,718 +10 +0.2% *The numbers reflect our rights and ownership ratios based on our equity share *The number shows Jan-Jun volume as fiscal year for Oil E&P in the Resources Segment ends in Dec. * Revised errors in Vietnam FY22 and FY23 1Q figures ■ Resources (Coal) Ensham Muswellbrook Boggabri [kt,%] 2Q FY2022 2Q FY2023 Change 1,425 1,252 (173) (12.1%) 716 15 (701) (97.9%) 2,446 2,417 (29) (1.2%) 4,587 3,684 (903) (19.7%) Total *The numbers reflect our rights and ownership ratios *The number shows Jan-Jun volume as fiscal year for Coal in the Resources Segment ends in Dec. idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 44 44#45Sales Volume(Forecast) ■ Petroleum Volume [KKL,%] 5/9 Revised Change Forecast Forecast Gasoline 12,700 12,700 Naphtha Jet Fuel Kerosene Diesel Oil 210 350 +140 +66.7% 2,330 2,470 +140 +6.0% 3,720 3,680 (40) (1.1%) 10,530 10,320 (210) (2.0%) Heavy Fuel Oil A 3,230 3,240 +10 0.3% Heavy Fuel Oil C 2,720 2,500 (220) (8.1%) Total Domestic Sales Volume 35,440 35,260 (180) (0.5%) Exported Volume 8,500 8,240 (260) (3.1%) Total Sales Volume 43,940 43,500 (440) (1.0%) *Export includes bond sales of jet fuel and heavy fuel oil C Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. idemitsu 45#46Sales Volume(Forecast) ■Basic Chemicals Basic Chemicals ■Functional Materials Lubricants Performance Chemicals *includes sales overseas Volume [kt,%] 5/9 Revised Change Forecast Forecast 3,780 3,600 (180) (4.8%) [KKL,kt,%] 5/9 Revised Change Forecast Forecast 1,220 1,160 (60) (4.9%) 720 710 (10) (1.4%) ■ Power/Renewable Energy [Mkwh,%] 5/9 Forecast Revised Forecast Change Retail Power Sales 2,060 1,990 (70) (3.4%) idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 46 46#47Production Volume(Forecast) Volume ■Resources (Oil E&P) [KBOED,%] 5/9 Revised Change Forecast Forecast Norway 14.0 15.3 +1.2 +8.9% Vietnam 12.8 13.0 +0.3 +2.1% Total('000BOED) 26.8 28.3 +1.5 +5.7% Total('000BOE) 9,779 10,333 +554 +5.7% *The numbers reflect our rights and ownership ratios based on our equity share *Revised errors in Vietnam of forecast announced on 5/9 ■Resources (Coal) [kt,%] 5/9 Revised Change Forecast Forecast Ensham 1,190 1,660 +470 +39.5% Muswellbrook 0 15 +15 Boggabri 5,200 5,280 +80 +1.5% Total 6,390 6,955 +565 +8.8% *Fiscal year for Oil E&P and Coal included in the Resources Segment end in Dec. *The numbers reflect our rights and ownership ratios *Ensham was sold by the end of Aug. idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 47#48Segment Information ■Factors Affecting Operating + Equity Income (excluding inventory impact, y-o-y) core products margin (time-lag) fuel cost, Importing cost and affiliates etc. Cost, etc. Lubricants, etc. Vietnam Volume Power Export 6.0 54.7 9.9 Norway non-core 1.0 products (5.5) Volume margin (9.0) (9.0) (7.8) Price (22.0) 15.0 12.0 252.7 FY2022 Fidemitsu Petroleum +72.7 Basic Functional Chemicals Materials +10.9 +6.0 Power/ Renewable Energy (5.5) (32.7) Oil E&P (16.8) Forecasts Exchange rate, etc. [\billions] Consolidated adjustment, etc. 5.0 220.0 1.9 (85.0) Coal (105.1) Others +5.0 Resources (121.9) FY2023 → Forecasts Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 48#49[USD/bbl] 130 Crude Oil Prices (Dubai and Brent) Brent Dubai 110 90 70 50 50 30 30 10 Apr-18 Apr-19 Apr-20 Apr-21 Apr-22 idemitsu Crude price Apr-23 Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 49 49#50[Price :JPY/L] Gasoline-Crude Oil (Domestic spot price and spread) 140 120 100 Spread -Crude oil Gasoline 60 80 60 60 40 40 20 20 Product market price [Spread JPY/L] 25 0 Apr-19 Apr-20 Apr-21 Apr-22 idemitsu 20 20 15 10 10 5 0 Apr-23 Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 50 50#51[Price :JPY/L] 140 Diesel-Crude Oil (Domestic spot price and spread) Product market price [Spread JPY/L] 25 Spread 120 -Crude oil 100 -Diesel oil 80 660 40 40 20 20 0 Apr-19 Apr-20 Apr-21 Apr-22 idemitsu 20 20 15 500 10 LO 5 0 Apr-23 Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 51#52Gasoline-Crude Oil (Singapore spot price and spread) [Price :USD/bbl] 160 140 Spread Dubai -Gasoline 120 100 80 60 60 660 40 40 20 20 Product market price [Spread USD/bbl] 0 Apr-19 Apr-20 Apr-21 Apr-22 idemitsu 40 35 30 30 25 20 22 15 10 10 5 0 -5 Apr-23 Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 52 42#53Diesel-Crude Oil (Singapore spot price and spread) [Price :USD/bbl] 180 Product market price [Spread USD/bbl] 70 Spread 160 Dubai Diesel Oil 140 120 100 80 60 60 40 40 20 0 Apr-19 Apr-20 Apr-21 Apr-22 idemitsu 60 60 50 50 40 40 30 30 20 20 10 0 Apr-23 Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 53 53#54Para-Xylene, Mixed Xylene-Naphtha (price and spread) [Price :USD/ton] 1,400 PX spread -PX Mx spread .MX Naptha 1,200 1,000 800 600 400 200 0 Apr-19 Apr-20 Apr-21 Apr-22 Fidemitsu Product market price [Spread USD/ton] 600 500 400 300 200 100 0 Apr-23 Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 54 ....#55Product market price Styrene Monomer-Naphtha (price and spread) [Price :USD/ton] 1,600 SM spread -Naptha 1,400 1,200 -SM 1,000 800 600 400 200 0 Apr-19 Apr-20 Apr-21 Apr-22 idemitsu [Spread USD/ton] 800 700 600 500 400 300 200 100 0 Apr-23 Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 55 59#56Operational Data ■Refineries Utilization Operation FY2023 FY2019 FY2020 FY2021 FY2022 (2Q) 87% 78% 77% 83% 75% *on BCD basis(including regular maintenance) ■Number of Service Stations FY2023 FY2019 FY2020 FY2021 FY2022 (2Q) 6,384 6,311 6,216 6,136 6,046 idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 56 56#57Overview of the Company Business Overview FY2022, actual or as of the end of March 2023 ■ Petroleum Segment Refining Capacity 945 KBD *1,2) □ Domestic fuel oil sales volume 35 million KL/year *3) □ Number of service stations 6,100 ■ Basic Chemicals Segment □ Ethylene 1 mil tons/year (Production Capacity*2)) Para-Xylene 0.84 mil tons/year □ Mixed Xylene 0.94mil tons/year □ Styrene monomers 0.79 mil tons/year Functional Materials Segment (Lubricants, Performance Chemicals, Electronic Materials, Bitumen (High Performance Asphalt), Pesticides and Functional Feed, Lithium Solid Electrolytes) □ Lubricants (sales volume): 1.2 mil KL/year Engineering plastics(sales volume): 150,000 tons/year □ Adhesive materials (production capacity): 65,000 tons/year □ OLED materials (production capacity): 26 tons/year Power and Renewable Energy Segment ㅁ Power generation capacity 1.94GW Renewable energy 0.83GW ■ Resources Segment *4) Crude oil production 29,000 BD Thermal coal production 6 mil tons/year *1 1,090 KBD when adding the refining capacity of Fuji Oil, Co., Ltd. with which a petroleum products trade agreement has been signed *2 excluding Nghi Son's capacity *3 Bond jet fuel and Bond heavy fuel oil C are included in the exports *4 For resources segment, the numbers are based on forecasts for FY2023. Muswellbrook was ceased in FY22. Ensham is decided to be sold Fidemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 57 57#58Petroleum Segment Business Overview as of the end of March 2023 [KB/D] Operating Refinery Company Refining Capacity RH FCC RFCC FLG Equity Ratio Japan Hokkaido 150 42 33 Idemitsu Kosan Chiba 190 40 45 Aichi 160 60 60 Showa Yokkaichi Yokkaichi 255 45 Sekiyu Toa Oil Keihin 70 42 50 50 61 75.0% 27 100.0% Seibu Oil Yamaguchi 120 52 30 100.0% 945 239 72 189 27 Overseas Nghi Son Refinery |Nghi Son *1,2 200 105 and Petrochemical (Thanh Hoa, Vietnam) LLC *1 Capacity before equity ratio reflection 200 *2 Yamaguchi refinery is scheduled to stop operation by the end of March 2024. idemitsu 80 60 105 80 35.1% Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 58 59#59Basic Chemicals Segment Business Overview as of the end of March 2023 [mil tons/year] Production Capacity for core products Operating Company Complex/Factory/Refinery Ethylene Para-Xylene Mixed Xylene Styrene Monomer Equity Ratio Japan Idemitsu Kosan Chiba 0.374 0.265 0.210 Aichi 0.357 0.170 Tokuyama 0.623 0.214 0.340 Showa Yokkaichi Yokkaichi 0.518 75.0% Sekiyu Seibu Oil Yamaguchi 0.250 100.0% Total 0.997 0.836 0.938 0.550 Overseas Idemitsu SM Pasir Gudang (Malaysia) Sdn. Bhd. (Johor, Malaysia) | Nghi Son Refinery Nghi Son 0.700 and Petrochemical (Thanh Hoa,Vietnam) LLC Total 0.700 idemitsu 0.240 70.0% 0.240 35.1% Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 59#60Business Overview Functional Materials Segment (1/2) Product categories Lubricants .Automotive lubricants (engine oil, etc.) .Grease ⚫Industrial lubricants (hydraulic actuation oil, cutting oil, etc.) Global business with a focus on automotive lubricants #8 global share • Over 50% overseas sales R&D centers Japan and overseas (US, China, etc.) Global lubricant network Performance Chemicals Product categories ⚫ Engineering plastics, adhesives materials, derivative products, solvents and functional materials Major products, applications, features • Engineering plastics (Product) PC/Polycarbonates (Applications) smartphones, lenses, automotive lights, etc. (Features) highest impact resistance among plastics (Product) SPS/ Syndiotactic Polystyrene resin (Applications) automotive electronic parts, kitchen appliances, etc. (Features) lightweight and offers excellent heat resistance, electrical properties, chemical resistance, and hydrolysis resistance Daytime Running Lamp (DRL) Automotive parts ⚫Manufacturing/sales/R&D network in 28 countries • Strengthening existing facilities and developing new facilities •Adhesive materials (Product) Hydrogenated petroleum resin (Applications) Tackifier for hot-melt adhesives idemitsu Disposable diapers and other hygiene products Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 60 60#61Business Overview Functional Materials Segment (2/2) Electronic Materials Product categories • Organic EL materials .Display semiconductor materials etc. OLED manufacturing/customer support Bitumen (High Performance Asphalt) Asphalt manufacturer which aims to develop state-of-the-art technologies .Recycling, longer life, carbon neutrality Product categories .Engineering/construction asphalt ⚫Industrial asphalt •Value-added asphalt for roads Todaiji Temple Korea: 12 tons (Paju plant) China: 12 tons (Chengdu plant) Maybright (Value-added asphalt for roads) Japan: 2 tons (Omaezaki factory) Pesticides and Functional Feed Product categories ⚫ Chemical pesticides (Daconil 1000*1, etc.) .Plant-derived pesticides .Functional Feeds (RUMINUP*2, etc.) • Establishing factories and customer support centers in Asia and reinforcing relationships with display manufacturers, etc. to further expand the organic EL materials business in Asia Aiming to develop and commercialize oxidative semiconductor materials which are expected to conserve energy and enhance image quality of display products idemitsu 7214 727 ダコニール 1000 506 ANH カシューナッツ (牛用 ルミナップ.M Daconil 1000 RUMINUPⓇ M *1 Protective disinfectants less affecting organism that has the stable effect toward various crops and damage owing to disease *2 An animal husbandry material containing cashew nut shell liquid that has the effect of reducing methane gas in cattle burps Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 61#62Power/Renewable Energy Segment Power Solar Category Biomass Power Plant 34 domestic locations Keihin Biomass Power Plant (Kanagawa) Tosa Power Plant (Kochi) Operating Company Idemitsu, other Keihin Biomass Power Tosa Green Power Fukui Green Power (Fukui) Fukui Green Power Tokuyama Biomass Power Plant (Yamaguchi) Idemitsu Solar Wind Rokkasho Village Village Wind Farm (Aomori) Futamata Wind Development Geothermal Takigami Binary Power Plant (Oita)* Idemitsu Oita Geothermal Renewable (Japan) Fire Ohgishima Power Station (Kanagawa) Mizue Thermal Power Plant (Kanagawa) Aichi Refinery Power Plant (Aichi) Ohgishima Power Toa Oil Idemitsu Domestic Solar Fire Overseas (North America, Vietnam, etc.) Overseas Overseas Total Business Overview Stake Owned Power generation capacity* (%) (10,000 KW) 18.7 100 4.9 550 0.3 10 0.1 5.0 40 40 2.0 100 0.5 31.5 285 25 30.5 100 27.6 25.0 114.9 52.1 27.1 79.2 194.1 *Reflects Idemitsu's stake Owning 836 thousand KW(Japan:315, Overseas:521) of renewable energy generation capacity Operating businesses such as wholesale and retail sales for high and low pressure, based on the company's own generation Terminated production in June 2022 Shifting to a system integrator which engages in solar power generator design, construction, maintenance and recycling idemitsu Idemitsu has been supplying the steam for power generation to the Takigami Power Station of Kyushu Electric Power Co., Inc. since start of operation Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 62 62#63Resources Segment (Gas and Oil E&P) Business Overview 1. Producing and selling crude oil/gas in Vietnam and Norway 2. Exploration and development of gas in Vietnam and other parts of Southeast Asia to shift to production of natural gas, which will become an important energy source in a decarbonized society Rights owned in oil/gas fields and sales Business Overview Production Oil/Gas Reserves Reserves *2,3 150 100 [million BOE] 2020 2021 *2 Total reserves in Norwegian oil fields and Vietnamese gas fields *3 Reserves reflect Idemitsu's rights and ownership ratios 50 destinations as of the end of March 2023 Rights owned Destination (%)*1 0 Sao Vang and Dai Nguyet gas field (Vietnam) 43.08 Asia Snorre 9.60 Tordis/Vigdis 9.60 Statfiord/East 4.80 Sygna 4.32 Norway Fram 15.00 Europe H-Nord 28.80 Byrding 15.00 Vega 3.30 Duva 30.00 *1 Companies in which Idemitsu owns rights Norway INPEX Idemitsu Norge AS Vietnam Idemitsu Gas Production (Vietnam) Co., Ltd. Reserve Estimation Standards 2022 •Idemitsu's reserves estimation is conducted based on PRMS (Petroleum Resources Management System) standards ⚫PRMS standards were established jointly by the Society of Petroleum Engineers (SPE), the World Petroleum Congress (WPC), the American Association of Petroleum Geologists (AAPG), and the Society of Petroleum Evaluation Engineers (SPEE) and is recognized as an international standard ⚫Reserves defined by PRMS standards are categorized into 1) proved, 2) probable, and 3) possible reserves. Idemitsu's reserves estimate is calculated as the total of proved and probable reserves (1+2) Proved Reserves ⚫The definition of proved reserves is recognized as the most conservative among definitions used widely in the petroleum/gas industry • Proved reserves are those quantities of petroleum/gas which, by analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable under current economic conditions and operating methods ⚫When probabilistic methods are used, there should be at least a 90% probability of recovery that the quantities actually recovered will equal or exceed proved reserves Probable Reserves ⚫Probable reserves are those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be recoverable •When probabilistic methods are used, there should be at least a 50% probability that the quantities actually recovered will equal or exceed the sum of estimated proved plus probable reserves idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 63 63#64Business Overview Resource Segment (Coal) [Business Strategy] Business Overview Stable supply and profit maximization by leveraging the highly competitive Boggabri Mine Engage in low-carbon solution businesses such as Idemitsu Green Energy Pellets Leverage management resources built up over years of experience in Australia to transition to new businesses such as rare metals, renewable energy, hydrogen/ammonia, etc. 1. Mining Operations Owning an Australian coal mine (Boggabri Mine) and has established a whole supply chain from production to sales, providing a stable supply of high-quality coal mainly to Japan [Overview of Boggabri Mine] Location: New South Wales Coal quality: thermal coal (80%), raw coal (SS/PCI) (20%) Port for shipments: Newcastle Harbor (about 360 km by train) Business Structure Reforms Idemitsu Green Energy Pellets (black pellets) ⚫ CO2 emissions can be reduced by replacing coal with black pellets in fuel used at coal-fired power stations • Succeeded in a mixed combustion to replace 20-30% of coal fuel with black pellets • Planning to operate a commercial plant that produces 120,000 tons/year in Vietnam in FY23. Aiming to reach 3,000,000 tons/year by 2030 Vietnam Commercial Plant *Mining operations at Muswellbrook Mine were terminated in 2022 and a decision to sell Ensham Mine has been finalized New businesses in Australia Rare metals: Invested in Vecco, which engages in vanadium operations in Australia •Renewable energy: Commercialization verification of pumped storage hydroelectric power generation at the post-mining Muswellbrook coal mine site idemitsu Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 64 -#65idemitsu Precaution statement about forecasts Any information about forecasts for the Company's operating results, management strategy and management policy contained in this documents other than historical facts is prepared, according to judgments made by the top management of the Company based on information available as of the publication of the document. Actual business environments contain potential risk factors and uncertainties including economic situations, crude oil prices, trends in petroleum products, market conditions, currency exchange rates and interest rates. Consequently, actual operating results of the Company may substantially differ from forecasts due to changes in the important factors mentioned above. Copyright Idemitsu Kosan Co., Ltd. All Rights Reserved. 65 99